Small and Medium Forest Enterprises to be Most Affected by U.S. Tariff Hikes

Small and Medium Forest Enterprises to be Most Affected by U.S. Tariff Hikes

The Chilean forestry industry is on high alert due to the imminent imposition of tariffs by the United States on imports of softwood and sawn timber, set to take effect starting tomorrow. The Chilean Wood Corporation (Corma) issued an urgent call to authorities to act swiftly and in collaboration with sectoral associations, in order to mitigate the impact of these measures recently imposed by President Donald Trump.

Rodrigo O'Ryan, president of Corma, expressed his concern for small and medium-sized enterprises (SMEs), which will be the most affected by the 10% tariffs on wood and 25% tariffs on wood manufactures. O'Ryan emphasized the need to maintain and potentially strengthen trade relations with the U.S., or to seek alternatives that allow for a gradual adaptation to the new conditions without severe short-term impact.

The uncertainty generated by these tariffs is considerable, and their concrete effect on the industry is still difficult to quantify. However, it is anticipated that Chilean products will become more expensive in the U.S. market, affecting competitiveness compared to countries exempt from these tariffs, such as Canada and Mexico. Additionally, markets are expected to begin readjusting, which could increase pressure on Chilean export volumes and prices.

The United States is the second most important destination for Chilean forestry exports, accounting for 18.4% of the market share. With 97.9% of products exported to the U.S. subject to the new tariffs, the sector is facing a critical moment, exacerbated by reduced timber availability due to fires, lack of promotion policies, decreased domestic demand, and rising structural costs.

The current situation demands a coordinated and strategic response involving both trade diplomacy and internal support measures. Corma urges authorities to work jointly with the Ministry of Foreign Affairs and the Undersecretariat of International Economic Relations (Subrei) to negotiate exclusions or tariff reductions on products where Chile is a strategic partner.

The Chilean forestry industry is at a turning point, and the decisions made in the coming days will be crucial for its future.


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